Second Economic Stimulus Payment Coming?
It seems the idea of a second round of economic stimulus payments is gathering steam. Over the last couple weeks several writers have mentioned the possibility, citing rumblings from House Democrats. I wasn’t overly enthusiastic about the first economic stimulus package, and I believe a second one would be downright irresponsible. So what’s fueling these rumors of a second tax rebate?
First Check Failure
With their first economic stimulus check many Americans will elect to build emergency savings or pay down debt. Both of these actions are financially wise, but do not do much to stimulate the economy. In fact, I put most of my stimulus check into our emergency fund at ING Direct. The consensus seems to indicate that if a second round of economic stimulus payments goes out it will likely be spent since the first provided some debt relief and/or a savings cushion. This theory seems to make a lot of sense, and if generating more spending is the ultimate goal, a second payment would likely generate results.
Iraq War Funds to Enter the Debate
Some are predicting Democrats will tie a second economic stimulus payment to Iraq war funding, making it even more politically unpopular for the President to strike down the measure. Without getting too political, I don’t like the idea of anyone on either side of the aisle using war funding as leverage in economic stimulus negotiations. I could think of several programs I’d cut before defense spending. Regardless, the argument ought to be a moot point because I don’t believe there is a need for a second economic stimulus package. Under a pure capitalist system markets will ultimately correct themselves. Yes, it could make for a very difficult period of months, or even years, but government intervention is rarely the answer.
Be Prepared - Just in Case
If a second stimulus check does find its way to your mailbox consider using it in much the same manner you used the first (assuming you used the rebate check wisely). Resist the temptation and political peer pressure to simply spend the rebate check for the sake of spending it. If you have no emergency savings, start an emergency fund. If you are deep in debt, apply the rebate money towards your lowest debt balance and become closer to living debt free.
That’s interesting. It’s the first I’ve heard of it. Part of me thinks it’ll be great to stash some more money away but it’s hard to think it’s all good when the country keeps digging itself into debt this way.
I haven’t gotten my first rebate yet, but I’m open to the idea of a second one! I wonder if this is the most fiscally responsible thing to do since the national debt is so high. However, I’d rather that I be in control of my money instead of the government.
Also, if your readers are wondering where their first rebate is at, they might want to check out Be Wise With Your Economic Stimulus Tax Rebate.
Wow. I hadn’t heard this particular rumor, either. I’m rubbing my hands together with delight over the first rebate check, and of course another $600 won’t go to waste in my household, but I’m hesitant to believe that giving money back to Americans on the assumption that we’ll go out and buy plastic doo-dads will improve the economy.
I’m not even sure I like the idea of an economy based on the health of consumer spending. Depending almost solely on our ability (and desire) to purchase meaningless goods (most of which aren’t even made in the U.S.) seems reckless.
This rumor is new to me. While I wouldn’t protest another stimulus check by sending it back, I really don’t believe that this would be a good idea. Forget spending, if we get a second check, it will be joining its sibling in our savings account.
Very Interesting. Did they give a time frame for any possible second rebate?
It is clearly political pandering. If they really wanted to help they would permanently cut taxes across the board and streamline the tax process. Of course they won’t do that. They’d rather be seen as “giving” us gifts (of our own money!) in order to get reelected. It makes me sick.
And our rebate will go to a new set of tires and savings. It was my money in the first place. I like the analogy - it’s like a robber stole $20 and is “giving” me $5 back.
I would spend it….on debt. I like castocreations analogy. Why can’t the oil companies and the banks give rebates. that would really jumpstart the economy
I agree with castocreations. Basically they are trying to buy our votes with our own money.
Would much rather see the tax cuts made permanent, and Congress learn to live within it’s means like the rest of us.
Frugal Dad, I am saving my Stimulus check, or should I say, Stimulus Deposit since it went straight to my bank account. Saving the money is the best thing anyone can do, besides paying off their debt.
A 2nd rebate check would be a big mistake, in my opinion. These rebates are nothing more than short-term fixes for the economy, and we all know that short-term fixes can lead to long term problems for the economy. Just my two cents…
I put the first one in savings. Just got it today.that’s right where a second one would go. I don’t think it really helps the economy. I’m sure not going to spend the money on something I want now as much as maybe on something I need later.
Read the book: The secret world of money / by Andrew M. Gause. Published in 1996 the author pointed out where we would be right now and he hit the nail on the head. With our trillions of dollars in debt to the centeral bank-Fed, we will never pay off the debt and inflation and taxes will just continue till the whole money system collapses. Very learned author.
If the government wants the money to be spent on consumer goods, why doesn’t the government just use the rebate money to buy a bunch of consumer goods?
Why give it to people who are more likely to pay down debt? This would also save them the cost of distributing all these checks to everyone.
I got my rebate on friday, didn’t get the full 600 though. I got 453, which is the amount that they took from me in the begining after calculating my return. It went into the savings account, which is where it would have gone if they didn’t take it in the first place to fund poorly organized programs for the “unemployed” or overly lazy! I work at a grocery store, go to school full time and qualify for no financial assistance…. then at work I see all this people purchasing food with EBT (food stamps) while driving cars such as BMW’s…it a joke!
I believe that the check is just a way for us middle class people to pay for our gas and groceries. I am about ready to ride a horse and buggy like the old days and grow my own garden to alleviate the “pain at the pump and the grocery store.
The stimulus will only work if they raise the minimum wage AND give us a cost of living raise. Just in the past year look at how much things went up. Did my paycheck? NO. It needs to, so I can stay alive!
When and if the first check gets here, it will go into savings. Period. If there is a 2nd one, it will go into savings. Period.
Obviously, I’m not ‘doing my part’ to stimulate the economy…. but I am hoping to retire soon - and that’s my cushion!
My 1st check (well, $500 of it) went to pay off my credit card). If the people in Washington were smart, they’d give us all a 2nd stimulus check BUT make it a $600 debit card that can ONLY be used at gas stations…….see, it helps the economy AND stops the bleeding from our savings/checking accounts.
Their will alway’s be pro’s and con’s to the stimulus payment, but I favor towards the pro’s because right now whether people purchase things just to have or pay bills it helps a litte to revive our economy. But this we all know is just a small bandaid, but we need to focus on is a bigger plan to fix things, remember every problem takes time.
I just heard this on the news the other day and I am all for another stimulus check. I’ve been lucky enough to already have received my first check and paid off a few things (and bought a few) but my husband and I already live paycheck to paycheck so anything would help!!!
I managed to save half of my first stimulus check for a whole month now, but if gas gets any higher, which it will, It’l probably be gone by the end of summer. I am like a lot of Americans living paycheck to paycheck and had to live off of my credit cards for a while until I was promoted at work finally after trying for 2 years! I can actually put $50 in savings a month. I welcome a second stimulus payment, maybe I’ll be able to buy my son something for Christmas this year!
To katie_bell: Not everyone that uses an EBT card is “lazy”, I am a single mom and work as an Instructional Aid with Special Ed children “FULL-TIME” (the most stressfull job I’ve ever had) and I still need assistance with purchasing food (EBT). Please don’t judge people you know nothing about, thank you!
Evidently we ARE going to be getting a 2nd stimulus check. IT was just on the news…so hold on to your hats & savings…another one is on the way by the end of the year….
Since the second stimulus check was confirmed on the news, does anyone have an idea of when it will be arriving? I’m saving for a wedding, and this will help out a lot.
Well in my opinion the goverment was only stimlulating itself with the 1st check & will counitnue to do so with any others. As I lost 1/2 my check due to my wife having a dept to the goverment, and I’ve heard this story from friends & neighbors.
i think we need this second check gas prices utilty prices and some of us just arent as privlaged as others yes please send me another check so i can get caught up also my first check was goofed up and waiting to hear from them about that.
Okay, I agree with all of you. The stimulus checks do have ups and downs, and the government really needs to stop spending OUR money on stupid things and spend it more wisely. But honestly, I would love to have a second check. Shoot, maybe a third, fourth heck make it 2xs a year so we get our hard working $$$$ back. And then maybe, just maybe I won’t have to pitch a tent in my parents back yard. I have 3 kids and work, and can’t say no to $$$. REMEMBER, its the root of all evil. MONEY, MONEY, MONEY. Makes the world go round.
To: “anothercheckwow”, Technically it’s The “LOVE” of money is the root of all evil, but sounds like you’re already there! Hm, so is the rest of the country I guess, that’s what started this whole economic mess… G-R-E-E-D! =/
[…] economic stimulus check. I mentioned a few weeks ago the possibility of receiving a second stimulus check, and it appears from recent rumblings in Washington that the prediction may come true. We used […]
Well the first check that I received went directly towards bills in my home and I didn’t have time to mess off any of it. So another check would be greatly appreciated in my home. It would definitely help to pay off more bills.
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